Geri P asked:
House went to foreclosure. I have a lien. The bank who holds the mortgage note bought it in a judicial sale. What happens to my lien?
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I have a lien on a house and the bank that has the note bought it in a foreclosure sale, what happens to lien?
29th Apr 09
Admin
shiprepairwoman
April 29th, 2009 at 16:32
There may not have been enough equity to cover your lien. When the house was sold the mortgages were paid in the order they were filed in until they ran out of money. You may get a judgment against the person who lost their house. The new owner doesn’t owe you anything even if they were the holder of a earlier mortgage. That is why second and third mortgages pay higher interest.
rhsaunders
May 2nd, 2009 at 11:59
It’s history. The bank’s lien was undoubtedly prior to yours, and foreclosing on a senior lien wipes out all the junior liens. You now have an unsecured claim against the former owner.
Real Estate Guru
May 4th, 2009 at 21:41
It depends on what lien position you had on the property.
Banks/people get paid in the order they are listed and sometimes there isn’t enough money to cover everyone.